Issues surrounding Basel II, such as credit and operational risk, topped the list of key issues facing risk professionals, according to a survey conducted by The Professional Risk Managers' International Association (PRMIA) and Reuters at PRMIA's European Summit. Fifty-three percent of respondents plan to spend in the range of 100,000 euros to 5 million euros on new credit risk IT solutions in 2003. An additional 27 percent say they would spend between 700,000 euros and 5 million euros on advanced Internal Rating Based approach for Basel II, while the remaining 20 percent have no plans or do not know how much they intent to spend in 2003.
Toronto-based Algorithmics struck an alliance with Cicada Corporation and Investors Guaranty of Zurich to develop a suite of reference data and managed-risk-solutions for compliance with Basel II and other regulations. The service will combine Algorithmics' risk-analytics- technology with Cicada's data cleansing and outsourcing services. Investors Guaranty's alliance companies will supply initial capital for the venture, as well as other business support.
NYFIX Transaction Services, a broker/dealer subsidiary of NYFIX, Inc., received approval to become an Electronic Access Member of the International Securities Exchange, the only fully electronic U.S.-options exchange. NYFIX plans to introduce direct-electronic access to U.S. options markets, including the ISE. NYFIX will integrate the direct access capability into a user-friendly analytical package with the new release of its trading systems.
Swapstream--a new trading platform for swap and over-the-counter derivatives slated to go live in the second quarter of 2003--reached an agreement to interface with SwapsWire, an integrated, electronic- processing-network for derivatives. SwapsWire, a consortium of 23 leading derivatives dealers, provides a network for brokers and dealers to confirm deals in real time.